Connect with us

Published

on

Herms’ highly coveted Birkin handbag becomes even more coveted after it leaves the store — doubling in value in as little as five years, according to a luxury expert.

James Firestein, founder of luxury resale and authentication platform OpenLuxury, told Fortune that the steepest price increase he has ever witnessed when a Black Togo 30 Birkin doubled in value in five years.

For reference, the price of the Black Togo 30 widely varies on resale platforms due to the bag’s condition, type of hardware metals and the year it was purchased from Herms, going for anywhere from $30,500 for a “like new” bag on Sotheby’s to $10,925 on The RealReal or roughly $8,000 on eBay.

More commonly, however, it takes a decade for the price of a Birkin to surge two-fold.

“I know several instances where people have doubled their money based on buying it 10 years ago, and reselling it today in pristine condition,” Firestein said, per Fortune.

“The resale value of particularly the Birkin and Kelly bags over the past 10 years has outpaced gold, he added.

In 2020 alone, while when the luxury market ground to a halt during COVID, Birkin bags saw impressive returns of 38%, according to a report from Credit Suisse and Deloitte.

As a result, Firestein estimates that 25% of Birkin buyers keep the bag in storage as investments while the remaining 75% actually use the bags, Fortune reported.

Most shoppers look to the second-hand marketplace to buy Birkin bags, mostly because buying a luxurious piece of eye candy directly from Herms can be a time-consuming process that doesn’t guarantee customers get the exact style they want.

Herms allows stores and boutiques around the world to purchase a select number of Birkins per season, though the color and size of the bags are rarely known ahead of time, according to Sotheby’s.

And for aspiring Birkin owners who don’t already have an existing relationships with retailers, it can be even harder to ensure that a staffer will try and reserve the bag you want, Sotheby’s said.

As a result, Birkins, more often than not, sell for well beyond their $12,000 sticker price.

The pricing mostly comes down to scarcity principle, per Sotheby’s, which sold a Himalaya Birkin 30 encrusted with diamonds for $450,000, though the more common leather styles in fresh condition generally go for between $25,000 and $30,000, according to the auction house.

Herms has been accused of making it too difficult for the everyday shopper to acquire a Birkin of their own.

Two California plaintiffs alleged in a class-action lawsuit earlier this month that the French fashion house uses unfair business practices,” including requiring customers to buy other ancillary products such as shoes, scarves, belts, jewelry and home goods  before getting the opportunity to buy the coveted, chronically unavailable handbag.

Stay up on the very latest with Evening Update.

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

To be allowed to purchase a Birkin, the suit claims, customers must have accrued a sufficient purchase history with the luxury brand.

Once achieved, customers who are deemed worthy are then offered a Birkin — which is allegedly not on public display but rather in a private room, the suit claims.

The unique desirability, incredible demand and low supply of Birkin handbags gives defendants incredible market power, attorneys wrote in their filing.

Continue Reading

Sports

Cashman pins Yanks’ chances on playing ‘our best’

Published

on

By

Cashman pins Yanks' chances on playing 'our best'

Brian Cashman appreciates that World Series titles are expected from the New York Yankees, not just hoped for.

New York hasn’t even reached the World Series since its 27th championship in 2009, the second-longest drought in franchise history. The only longer one came in the Yankees’ first 18 years, from 1903 to 1920.

“We have a great shot, but we only have a great shot if we play our best baseball,” the general manager said Thursday ahead of an AL Division Series against Kansas City. “I know that we have the capabilities, but at the same time I caution that we’ve had capabilities many times before and you have to match those capabilities with, obviously, great defense, great baserunning, tremendous offensive at-bats against extremely tough pitching and, obviously, the most important aspect is pitching to the best of your abilities.”

After missing the playoffs last year for the first time since 2016, the Yankees rebounded following the December acquisition of Juan Soto from San Diego. They led the AL in runs with 815 after finishing 25th in 2023 and topped the major leagues in home runs with 237.

“I do honestly believe that anybody that’s currently in the tournament has a legitimate chance to raise that trophy,” Cashman said. “I think we have the pieces that are here and we have the will to make it happen, and now we just got to go up against an opponent that’s very worthy.”

Reigning AL Cy Young Award winner Gerrit Cole (8-5) starts Saturday night’s opener for New York after recovering from elbow nerve irritation and edema that sidelined him from spring training until June 19.

Michael Wacha (13-8) starts for Royals. He has held Yankees star Aaron Judge to 1 for 18 with three walks and no homers in his career.

“I’m chalking this up to small sample and I’ll take Aaron Judge against just about anyone on any day,” Yankees manager Aaron Boone said, “but we know Wacha is a tough customer. He’s always pitched us tough and we know we got our work cut out for us.”

New York beat Kansas City in the 1977 and ’78 AL Championship Series en route to World Series titles, and the Royals swept the Yankees in 1980 — leading George Steinbrenner to force out manager Dick Howser. The following summer, Howser took over as Royals manager and led Kansas City to its first World Series title in 1985.

New York won three of four at Kansas City in June, losing the series finale on Maikel Garcia‘s two-run double against Clay Holmes. The Yankees took two of three in the Bronx last month, losing the middle game when Seth Lugo and two relievers combined on a three-hit shutout for the Royals.

Kansas City swept Baltimore in a two-game Wild Card Series while the Yankees won the AL East and earned a first-round bye and a five-day layoff. The Royals are led by Bobby Witt Jr., likely to finish second to Judge in AL MVP voting, nine-time All-Star catcher Salvador Perez and a rotation that includes Wacha, Lugo and Game 2 starter Cole Ragans.

Reliever Lucas Erceg was acquired from Oakland at the July 30 trade deadline, and the 29-year-old right-hander had 11 saves in 13 chances for the Royals, striking out 31 and walking three in 25 innings. His fastball averages 98.6 mph.

“From early in the season ’til now, their bullpen has improved,” Boone said. “They’ve had a couple guys emerge down there and then obviously bringing in Erceg to anchor them has taken their bullpen to another level.”

Cashman said the Yankees are still deciding on their final roster moves heading into the ALDS, with right-hander Marcus Stroman’s status still up in the air.

“We haven’t made that final call yet,” he said. “Marcus threw in the sim [simulation] game yesterday, he threw two innings, so we’re trying to keep him with some volume and stretched out. I don’t expect him to be a starter in this series. As for what role we haven’t made that call yet.”

Yankees first baseman Anthony Rizzo remains doubtful for the Division Series after fracturing the fourth and fifth fingers of his right hand when he was hit by a pitch from Pittsburgh’s Ryan Borucki on Saturday.

“He’s full-bore treatment mode right now,” Cashman said, “A very tight window of healing to take place. … A lot less pain than you would expect and more strength to the squeeze than you would expect given what he’s gone through but he has not been doing baseball activity as of yet.”

Ben Rice and Oswaldo Cabrera are the primary alternatives at first.

DJ LeMahieu, who also plays first, has been sidelined since Sept. 3 because of a right hip impingement.

“He’s started to do things, Cashman said. “The time frame for him a little bit difficult.”

Information from The Associated Press was used in this report.

Continue Reading

Technology

Mark Zuckerberg is now world’s second-richest person, ahead of Jeff Bezos

Published

on

By

Mark Zuckerberg is now world's second-richest person, ahead of Jeff Bezos

At the Meta Connect developer conference, Mark Zuckerberg, head of the Facebook group Meta, shows the prototype of computer glasses that can display digital objects in transparent lenses.

Andrej Sokolow | Picture Alliance | Getty Images

Meta CEO Mark Zuckerberg has surpassed Jeff Bezos as the world’s second richest person.

Zuckerberg’s net worth reached $206.2 billion on Thursday, according to the Bloomberg Billionaires Index, topping the $205.1 billion net worth of the former Amazon CEO and president. The Facebook co-founder now trails Tesla chief Elon Musk by roughly $50 billion, the index showed.

With his 13% stake in Meta, Zuckerberg’s net-worth has risen by $78 billion since the beginning of the year, which is more than any member of the of the 500 richest people that the Bloomberg Index tracks. Meta shares closed at a record high on Thursday at $582.77, representing a roughly 68% jump from early January when its shares were trading at $346.29.

Zuckerberg’s rise to the second spot on the index on Thursday underscores how his personal wealth has grown alongside investor enthusiasm over the social media giant’s rising profits this year.

Wall Street has continuously cheered Meta throughout 2024 as the company has consistently reported quarterly earnings that have surpassed analyst estimates. In July, Meta said that its second-quarter sales grew 22% to $39.07 billion, marking the fourth straight quarter of revenue growth topping 20%.

Meta has pointed to its hefty artificial intelligence investments as helping improve the performance of its online advertising platform as a reason for its sales growth. The company’s online advertising system suffered a major setback in 2021 when Apple introduced an iOS privacy update that weakened its ability to track users across the web. Meta in February 2022 said that the privacy changes would cost it $10 billion in revenue.

In late 2022, Zuckerberg instituted a major cost-cutting plan that extended into the next year and ultimately resulted in 21,000 Meta workers losing their jobs, or roughly a quarter of the company’s workforce.

Investors reacted favorably to Meta’s cost cutting while the company’s online advertising business began to rebound and was bolstered by the massive digital ad spending campaigns by Chinese-linked retailers Temu and Shien.

While Meta has continued spending billions of dollars on the virtual and augmented reality technologies needed to underpin the futuristic concept of the metaverse, investors have become more tolerant of the investments as long as the company’s core ad business remains healthy.

Last week, Meta debuted its Orion AR glasses, which garnered positive reviews from the few people who have tested the prototype.

Watch: CNBC reviews Meta’s Orion AR glasses prototype

Meta's Orion AR glasses prototype: CNBC reviews

Continue Reading

Environment

Toyota invests a fresh $500M in Joby Aviation to support eVTOL air taxi certification, production

Published

on

By

Toyota invests a fresh 0M in Joby Aviation to support eVTOL air taxi certification, production

eVTOL air taxi developer Joby Aviation has secured a fresh round of funding from previous investor Toyota Motor Corporation, totaling $500 million. With its investment, Toyota’s total funding committed to the eVTOL specialist inches closer to $1 billion. The money will help Joby secure flight certification and begin commercial production of its sustainable aerial technology.

In terms of our coverage of electric vertical takeoff and landing (eVTOL) aircraft, Joby Aviation ($JOBY) has held a mainstay in the beat as it remains one of the more promising startups in a growing segment that is quickly becoming crowded.

Part of that previous coverage included Joby’s first flight with a pilot onboard in October 2023, which quickly led to a demonstration in New York City ahead of full-fledged eVTOL air taxi operations planned for sometime in 2025.

Since beginning as a small team of seven engineers back in 2009, Joby has grown to a staff of over 1,500 people who operate out of its headquarters in Marina, California, as well as additional offices in Santa Cruz, San Carlos, Washington, DC, and Munich, Germany.

Part of its success is early believers in its eVTOL technology, which has invested hundreds of millions in funding, including Toyota Motor Corporation. Since 2019, Toyota has been a strategic investor in Joby and its eVTOL technology. The Japanese OEM has even deployed dozens of its own engineers to work alongside Joby’s engineers to help the aviation company determine its eVTOL factory layout and manufacturing processes and prepare for high-volume production in the US.

Recently, Toyota nearly doubled its previous investments in Joby Aviation to help the company reach certification and scaled production of its eVTOL air taxis.

Toyota eVTOL
Toyota Motor Corporation Operating Officer Tetsuo “Ted” Ogawa and Joby Aviation’s Founder and CEO, JoeBen Bevirt / Source: Joby Aviation

Toyota’s investment in Joby eVTOLs reaches $894 million

Per a recent release from Joby Aviation, Toyota Motor has committed to a new investment of $500 million which will be divided into two equal portions. The first half of the payment is targeted to close before the end of 2024, with the second to follow sometime in 2025.

When completed, the $500 million financial commitment will bring Toyota Motor’s total investment in Joby up to $894 million and will consist of cash in exchange for common stock. Tetsuo “Ted” Ogawa (seen above), the operating officer who inked the agreement on behalf of Toyota Motor Corporation, spoke about the automaker’s faith in Joby’s eVTOL technology and its desire to help contribute to “a shared vision of air mobility.”

With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production. We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.

Toyota’s funding will help Joby in its ongoing quest to achieve flight certification and commercial production of its proprietary electric air taxis. The second payment, in particular, will rely on the finalization of terms related to a strategic alliance between both companies focused on commercial eVTOL manufacturing and other conditions.

In terms of eVTOL commercialization, Joby headway and recently rolled its third aircraft off its pilot production line in Marina, California, before breaking ground on a new expanded facility in The Golden State that will more than double its current production footprint. As of August 2024, Joby had completed 1/3 of the fourth and fifth stages of the type certification process before full-scaled eVTOL production and commercial air taxi operations with Toyota could begin.

You can learn more about Toyota’s investment and Joby’s eVTOL technology in the video below:

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending